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Friday, January 17, 2025

No tax on tips act introduced by senators aims to exempt tips from federal taxes

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Senator Rick Scott | Senator Rick Scott Website

Senator Rick Scott | Senator Rick Scott Website

Senators Rick Scott and Ted Cruz have introduced the No Tax on Tips Act, aiming to exempt tips from federal income taxation. This legislative initiative is supported by Senators Jacky Rosen, Catherine Cortez Masto, Steve Daines, and Pete Ricketts. Representatives Vern Buchanan and Byron Donalds have presented a companion bill in the House.

Senator Rick Scott emphasized his previous efforts as Florida's Governor to cut taxes over 100 times. He stated, "After four years of President Biden’s skyrocketing inflation making life harder for families, it’s about time we follow Florida’s turnaround playbook and take significant action to cut taxes with the No Tax on Tips Act."

Senator Ted Cruz remarked that many American workers depend on tipped wages. He noted, "I’ve long believed the GOP should be the party of bartenders, of waiters and waitresses," asserting that this bill will aid working Americans facing economic challenges due to current policies.

Senator Rosen highlighted Nevada's service sector workers as crucial to the economy: "This bipartisan bill will ensure tipped workers in Nevada can keep more of their hard-earned money." Senator Cortez Masto echoed these sentiments: "Working families in Nevada deserve a break."

Montana's Senator Steve Daines also supports the bill, stating it aligns with efforts to "bring back American prosperity." Representative Vern Buchanan underscored its importance for Florida's tourism-driven economy, emphasizing tax cuts for working Americans as a priority.

Representative Byron Donalds criticized Washington's focus on taxation and expressed pride in co-introducing this legislation. Sean Kennedy from the National Restaurant Association called it sensible legislation beneficial to employees in the restaurant industry.

Nina Daily from the Professional Beauty Association appreciated Senator Cruz’s acknowledgment of beauty professionals' contributions. Michael Layman from the International Franchise Association praised the proposal for benefiting small business owners and tipped employees nationwide.

The proposed bill allows taxpayers a 100% deduction for tipped wages at filing while including measures to ensure only traditionally tipped employees benefit.

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